By Sara Beth Williams–
The Citrus Heights City Council voted unanimously Wednesday evening approving a public-private partnership between the city of Citrus Heights and The Mettle Shop, that could result in the transformation of the Sunrise Mall property within the next 1 to 2 years.
The agreement involves a proposal by The Mettle Shop to build a large sports and entertainment complex known as the Sunrise Sports Center on a portion of the Sunrise Mall site. Plans for the project were confirmed in a March 6 press release from The Mettle Shop and the City of Citrus Heights. At the same time, the city announced new ownership is also pending for the majority of the Sunrise Mall property.
During the three-and-a-half-hour meeting, city staff, developers, residents, and council members discussed the proposed project and its potential economic impacts. Citrus Heights City Manager Ash Feeney said the project will serve as a catalyst for economic activity in the area, helping to advance the city’s vision for the Sunrise Tomorrow Specific Plan.
Feeney predicted the sports complex could create “ripples,” with impacts extending “well beyond the Sunrise MarketPlace.”
Councilmember Tim Schaefer called the vote “historic.” Developers, council members, and community members were visibly emotional during the meeting while speaking about the project’s potential.
The Mettle Shop CEO Joe Wagoner said the sports complex is a “legacy” project.
“We have a generational project looking for a home and a city looking for a project that will benefit generations. Every once in a while, those two things find each other at just the right time,” Wagoner said.
In the Economic Development and Participation Agreement, the city has agreed to provide $60 million to The Mettle Shop in secured municipal bonds. The Mettle Shop will finance the second half of the project, which is estimated to be another $60 million, but could be higher. The full details are available to the public in the agenda packet.
Municipal bonds are loans issued by cities, counties, or other local governments to raise money for public projects. Investors who buy the bonds are repaid over time with interest. Feeney said the bond will be repaid from Sunrise Sports Center revenues.
An economic analysis estimates the sports facility could generate $26.2 million in annual economic output for the city. According to city documents, the proposed complex is projected to attract 1.29 million visitors annually and generate hundreds of temporary and permanent full-time-equivalent jobs.
Economic projections were prepared by sports economist Daniel Rascher, a professor at the University of San Francisco whose firm, SportsEconomics LLC, has conducted work for organizations including the NBA, NFL, NHL, MLB, and NCAA, according to the staff report.
Five community members spoke in person, including former Citrus Heights Councilmember Jeannie Bruins, and Citrus Heights Chamber of Commerce Executive Director Sheri Merrick.
Most expressed support for the proposal, while one resident raised concerns about potential traffic increases on Macy Plaza Drive, and another resident warned against dividing the 100-acre mall property into too many parcels.
More than 50 written comments were submitted and read aloud. A vast majority of written comments expressed support for the sports center under the condition that Royal Stage theater, which remains open inside Sunrise Mall, be allowed to continue operating or receive assistance relocating if necessary.
During the reading of written comments, Schaefer asked whether comments similar in nature could be skipped. Citrus Heights Mayor MariJane Lopez-Taff and City Attorney Ryan Jones said comments submitted in writing must legally be read aloud.
Afterward, Councilmember Kelsey Nelson said the proposed project map for the sports center does not touch the Royal Stage theater “whatsoever.”
A map presented during the meeting shows the proposed sports complex is planned to be located on 13.75 acres on the northern end of the mall property, encompassing the former Macy’s Men’s building and adjacent parking lots.
The Royal Stage theater is located directly south of the former Macy’s Men’s building and includes both an interior mall entrance and an exterior entrance across from the former department store. Theater visitors currently use parking areas serving both JCPenney lot and the former department store.
When asked about the possibility of shifting the proposed location of the sports venue due to the existence of multiple businesses within the Sunrise Mall on the northern end and zero businesses residing on the southern end, The Mettle Shop referred all questions to the city and to Tallen Capital Partners.
When asked the same questions, in a statement sent Thursday, the city referred all questions to Namdar Realty Group, current owner of the mall building. Tallen Capital is in the process of purchasing the property from Namdar Realty.
The $120 million sports and entertainment complex is envisioned as a year-round venue capable of hosting sports tournaments, leagues, practices, and recreational programming, including public skating. Wagoner said that when not being used for sports, the venue can host conferences, festivals, live music events, and community gatherings.
Wagoner said that once project approvals are obtained from the planning commission and city council and construction begins, the building process is expected to take between 12 and 18 months. Wagoner said he hopes the facility will be operational by mid-2028 in time for hockey season training, which typically begins in September.
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